Having abandoned the establishment of a separate venture issuer disclosure and governance regime, the Canadian Securities Administrators has published for comment proposed amendments to current disclosure and governance obligations intended to streamline and tailor disclosure requirements and to enhance the substantive governance requirements for venture issuers.
The securities regulatory authorities in Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia recently published, in final form, Multilateral Instrument 45-108 – Crowdfunding. The instrument includes a crowdfunding prospectus exemption and a registration framework for funding portals to allow start-up and early-stage companies to raise capital.
The securities regulators in Ontario, Quebec, Manitoba, New Brunswick and Nova Scotia have proposed a new prospectus exemption for crowdfunding. At present, crowdfunding is most often used as a source of funding for charities, without the issuance of securities. However, the regulators consider it to be a viable alternative for start-ups and small and medium-sized enterprises to raise capital through the issuance of securities.